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PROMOTING ECONOMIC MOBILITY BY INCREASING POSTSECONDARY EDUCATION

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Although the statutory top marginal tax rate was over 90% in the 1950s, the average tax rate for the highest income taxpayers was much lower. The average tax rates at five-year intervals since 1945 for the top 0.1% and top 0.01% of taxpayers are shown in Figure 1. The average tax rate for the top 0.01% (one taxpayer in 10,000) was about 60% in 1945 and fell to 24.2% by 1990. The average tax rate for the top 0.1% (one taxpayer in 1,000) was 55% in 1945 and also fell to 24.2% by 1990, following a similar downward path as.

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